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coastal comeback. a look at the ambitious plan to buy homes destroyed by superstorm sandy. in today's cover story: after spending millions on super bowl ads, what is the corporate payoff? mark your calendars: the magic day to book a flight to snag the best deal. and, are investment clubs facing extinction? plus, getting down to business with sharon osbourne. what she's learned about finance from managing a rock star. first business starts now. you're watching first business: financial news, analysis, and today's investment ideas. good morning everybody! it's tuesday, february 5th. i'm angela miles, and we hope you like our new look! topping our show today... dow 14,000: gone but not forgotten. traders & investors
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focused on selling stocks monday, causing the dow to pull back. the nasdaq and s&p 500 also fell along with commodities. the market was fretting over political scandal in spain and economic instabilitly in italy. yum! brands, the owner of kfc, pizza hut and taco bell, posted better-than-expected earnings by a penny, but revealed sales are slipping in china. reports say boeing is requesting the faa allow test flights for dreamliners, which are grounded for now. and congratulations to the baltimore ravens. they will meet up with fans for a rally this morning. trader dan deming joins us now to get the ball rolling for us on this tuesday. good morning to you dan. > > good morning angie. > yesterday was the worst day for the stock market so far this year. what did you notice in trading? > > right now we saw a little bit of concern out there. the one thing i did notice is the fact that from last friday and yesterday we saw two 1% moves
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in the market: the s&p up about 1% last friday, down about 1% yesterday. so we are seeing now, at least short-term, realized volatility starting to pick up, and that is why i think you saw a significant pop in the vix, up about 15% around that 1465 area. > nonetheless, i am hearing from traders that this market will continue to do a slow grind higher. do you believe that? > > it appears to be the path of least resistance. you still have a lot of bears out there, and typically i'm one of those guys as well. right now the concerns out of europe rattled the markets yesterday. we will have to see if that stays in the market over the next couple of days. it could, and it could push us down, possibly even down to that 1470 area in the s&p. but right now, from a technical standpoint and possibly even a fundamental standpoint, if we see these numbers continue to come in at reasonably good levels, it looks like the path of least resistance is to those highs that we saw in 2007 around 1565, i believe. > good to have you on the show. have a good trading day dan. > > thanks angie.
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ratings are coming back to haunt standard and poors. the u.s. justice department plans to file charges against s&p for ratings assigned to mortgage bonds before the 2008 financial crisis. that agency - and others - slapped high ratings on mortgage securities that eventually led to financial collapse. it's the first federal action that's been taken against a ratings agency for behavior stemming from the housing crisis. s&p says "the lawsuit would be without factual or legal merit." higher prices at the gas pump trickled into consumers' spending by the most in 3 decades. gas prices are breaking records this february with an average cost of $3.50 per gallon. that as the energy information administration reports u.s. households spent an average of nearly $3,000 putting gas in their tanks in 2012, the most money since the early eighties. it's testy times in our nation's capital. president obama failed to submit a budget plan, and republican house speaker john boehner is calling him out on the missed deadline.
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"this was supposed to be the day he submitted his budget to the congress. but it's not coming. it's going to be late. some reports say it could be a month late." the white house spokesman says republicans should take up and pass the president's previous budget plans, which include billions of dollars in revenue from higher taxes. according to reports, the white house did not release an exact date on when the president will issue his next budget, but the white house reportedly is blaming congress for taking until january to work out a deal that would avoid the fiscal cliff. new york governor andrew cuomo proposes one of the most ambitious home buyback programs ever attempted. $400 million would be used to purch homes destroyed by superstorm sandy along the state's coastline. the governor would then preserve that land so that nothing could be re-built, thereby re-shaping how the coastline would be used. the purchase program will require federal approval. prepare for a price spike at the salad bar. the cost of lettuce and other vegetables may rise
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following a cold snap that hit california and arizona farms. cold temps hurt crops and caused the price of iceberg lettuce to rise 36% to $1.20 a pound. california is the top exporter of lettuce in the country. foxconn, famous for producing apple products and for its alleged mistreatment of workers, is widening its unions at its factories in china. the company is following recommendations of a panel hired by apple to improve working conditions. employees will now be allowed to vote for union reps, and top union officials will be elected by secret ballot without management's involvement. foxconn has been heavily scrutinized following reports of worker suicides and using 14-year-old "interns." a big buy for oracle. oracle shares moved in yesterday's trading session on word that the company will buy acme packet, which makes equipment for telecommunication companies. acme shares made a major move, up 23%, closing at $29, while oracle shares dropped
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3% to $35. analysts have suggested the deal may spur other tech giants, like ibm and hewlett packard, to purchase acme competitors. herbalife might need some life support from investors following a volitale day for the stock. the company's ceo has been on the defensive since herbalife was labeled a pyramid scheme last month. now comes word that the vitamin and nutritional supplements company is the focus of "pending law enforcement action." that's according to the new york post, which obtained documents through the freedom of information act. herbalife's stock fell more than 6% yesterday, then bounced back. clorox turned in healthy profits due to the flu outbreak, and that leads off our look at earnings news. shares of clorox hit a new all-time high after the company reported a 17% jump in profits. clorox is also lifting its sales projections as consumers scoop up cleaning products and disinfectant wipes. investors abandoned ship on shares of royal carribean. the cruise line had a 4th quarter
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loss and lowered its forecast. royal carribean claims some of its business was hurt by the carnaval shipwreck last year. airfare could soar higher this year, which has many people asking when is the best time to get the best deal? jen waters of has the answer. good morning to you jen, and what do you think? > > good morning angie. what i think is based on a very exhaustive study by cheapair, and they found that the best time to get a deal on a domestic fare was 49 days ahead of the flight. that is roughly seven weeks. international, it is about 81 days. so, you really need, especially if you are thinking about going on a spring break trip, you really should be planning now. > you really do have to plan ahead. should you be tracking the prices along the way? > > yes, absolutely. that is the best way to find a good deal, because sometimes there will be a 24-hour or a 48-hour sale, and if you're tracking the prices, if you kind of go into it saying, "here's what i think
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it is going to cost, here is what i am willing to pay, here is what i would really like as a good deal," and you just keep tracking them - and there are sites that can help you track them so you can find a really good deal on that - you just have to be diligent about it. > what are some caveats? i always feel like the airlines have these teaser deals out there. > > you know, what they will do is like a flight from chicago to l.a., for example, they could have 20 different prices on it, and all of those prices will be available the first day they announce the route. but, there is only going to be one or two of those cheap seats, for example. and you will get other prices based on where you are on the plane - if you're sitting in a window seat verses a middle seat, or if you are sitting in the first top 10 rows, or of course business or first class. but those deals will go. as the flights fill up, then that is when they start hiking up the ticket prices. so, that is why the long leeway. we used to have this thing where you could book a last-minute ticket and get a good sale, but, because the planes are so full these days, those deals are really hard to come by. > we miss those days. good to
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have you on the show today. > > thank you. memberships in investment clubs are faltering. reports say many investment clubs are breaking up due to market uncertainty. the clubs became popular throughout the 90s, as a way for indivduals to pool money and invest as a small group. however, the increase in volatility througout the last decade and a fear of stock losses have curtailed membership. the wall street journal says some groups are using less risky "stock options" to keep members interested. a company tied to the housing market debuts on the stock market this week. boise cascade, which makes wood products and building materials, plans to sell nearly 12 mllion shares. the ipo could generate up to $243 million. share prices are expected to range between $16 and $18. boise casacade will trade under the ticker symbol bcc on the new york stock exchange and opens for trade tomorrow. still to come, how to have an
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eye for talent. we'll hear what sharon osbourne has learned from her years in the spotlight. but first, was superbowl 47 a make-or-break moment for cbs? plus, a well-known business school breaks down the best and worst commercials. some tuesday morning quarterbacking when we come back!
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cbs scored a big win. 108 million people caught the superbowl game sunday, making it the 4th bowl to capture more than 100 million viewers. as for that blackout that lasted roughly 33 minutes in the third quarter of the sunday night game, nfl commissioner roger goodell confirms the outage was not caused by beyonce's high wattage half-time show.
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entergy, the company in charge of the electricity, is looking into electrical repairs at the new orleans superdome back in december. the stock fell 74 cents. there was a surge at the superbowl, and that's before the power went out. in our cover story, the explosive growth of second-screen activity - of tablets and tweets and smartphones participating in and reacting to what's on the big screen in the front of the room. "are we in the cloud? where is the cloud?" marketing analysts say the big winners were amy pohler, searching for "the cloud" at best buy and tide's near- religious ferver that followed a stain, followed by tributes to troops farmers, and a nurtured colt that grows up to make the team.
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"my favorite was the kids getting together the team... it was for a car, a believe." "i like the one with stevie wonder. i like that one." "people are recognizing the importance of 'branding.' it's so hard to feature attributes, that's why spots are being designed to connect with people." tim calkins, a marketing professor at northwestern who studies the strategy of superbowl ads with his students, found the biggest loser godaddy's moment of awkwardness. "and they leave saying that was not positive. go daddy took a step back this year." so what did we do when we saw
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this? after cringing, we tweeted and sent text messages - 47.7 million times on twitter, facebook and other social networks. last year, it was 17 million. the year before, three million. "the tougher link is to say how does that connect to sales? what's the value of a friend on facebook?" so with so many people looking down at their phones, is spending more than $7.5 million per minute worth it? "so far, i've not seen anyone put a dollar value of a friend on facebook." "i remember a coke commercial. i remember a calvin klein one." this year's superbowl was the third-most-watched event in american t.v. history. the 108 million viewers were slightly fewer than the number for the two previous super bowls.
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still ahead, what the business minds of the world can learn from rock and roll. we'll hear from sharon osbourne, next.
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what can the business world learn from sharon osbourne? she's developed a keen eye for talent in the music world, and a lot of what she looks for may be found in a lot of successful people. sharon, thanks for joining us. what do you look
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for first? > > the first thing i look for with anyone is the personality and the presence, because so many people who are famous and are successful don't really have that pizzazz with them. they don't have that presence. for me, it is very important to have that. i want somebody to be noticed when they walk in a room. i want to see that star quality. star quality necessarily doesn't have to be somebody with the best voice or the best dancer. it has to be a combination of many things. > you've been very successful at seeing potential and managing. how do you get others to put up the money it takes for the projects you want to do? > > enthusiasm and commitment. you can't go into a business meeting- you want financing, you can't go in there without confidence and strong
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commitment in something you believe in. if you go in there and you are weak and you are like this, it is like, "out, get out." you have to be a salesperson. you really do. people feel your passion, and if you go in and you want something for them, and you don't have a passion, you are not going to get it. > what if you've got an idea but not a track record? how do you overcome lack of experience? can it be done? > > yes you can. and you know what, it is about having the commitment, the passion, and the talent. it is the combination. you have to have the talent. you can have the best marketing team in the world around you. you might be successful, but you won't sustain that success. it will end. > sharon osbourne, co-host of "the talk" and spokeswoman for atkins. thanks for the advice - see you on tv! > > thank you. just ahead, have shares of disney topped out, or is the
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stock about to become more animated? stick around for chart talk.
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danica patrick: for the millions living with copd, breathing becomes a real struggle. copd stands for chronic obstructive pulmonary disease, but you may have heard of it as chronic bronchitis or emphysema. over time, it makes it harder and harder to breathe, until you feel like you're breathing through a straw. copd is the 4th leading cause of death in the u.s. it kills one person every 4 minutes, and it took my grandmother. an estimated 24 million americans are affected, but as many as half of them don't even know it. it's a race against time to spread the word about this serious disease. if you're over 35 and have ever smoked, you could be at risk. the good news is, there are steps you can take to improve your symptoms.
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i'm danica patrick, and i drive4copd. take action today to breathe better tomorrow. join the movement at take our screening questionnaire today, and talk to your doctor.
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matt shapiro, president of mws capital, joins us now for another look at disney ahead of earnings. good morning matt. > > morning angie. > the first thought i had when i saw this stock is, "why would anybody buy at these current high levels?" this stock has performed very well, but i bet you're an optimist. > > i am. but it is an important test, not only for disney, but for the market as a whole. can a big blue chip at its all-time highs deliver the goods and go higher? i think what is going to be crucial is - of course, making that 77ยข a share is crucial - but i have noticed this earnings season, the forecast, that subtle forecast of gross margin, how is its theme park business going to do on some guidance about the
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"star wars" purchase and the movies? all these things are going to be crucial to the outlook to see if the stock can go ever, ever higher. > as a money manager, knowing that the earnings are coming out today, is there any action you will be taking, or will you stay on the sidelines and wait until the dust settles? > > i definitely want to see all the intangibles in the earnings report, especially their growth forecast. disney has turned into one of our largest holdings over the years at mws capital, so i am really going to be looking at the analysts' recommendations following the conference call, how people see the tone of the earnings report. obviously, if there is a miss, the stock is going to drop. but, this is a great, classic company with lots of things in the pipeline, so, if it does come down, it is going to be a great buying opportunity for people who are not yet in the stock. > i notice disney was not overly active in the options yesterday. why do you think that is?
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> > i am kind of surprised, but, options activity has been somewhat muted. i think there is a lot of investability in disney and less trading around it, so, it shows investors are more comfortable with the shares. of course, we have to see that earnings come through, and i hope there has not been some complacency. i think if they really hit it out of the park, especially on the forecast, the stock could go higher. but generally, i expect the stock to be stable on a decent earnings report tomorrow. > thank you matt. > > you got it. that's it for today. coming up tomorrow, the warning signs cyber criminals are setting their sights on your personal information. from all of us at first business, thank you for watching, and have a great tuesday!

First Business
KICU February 5, 2013 4:00am-4:30am PST

News/Business. Angie Miles. (2013) New. (CC) (Stereo)

TOPIC FREQUENCY S&p 5, Sharon Osbourne 5, Angie 4, U.s. 3, Herbalife 3, Oracle 3, Clorox 3, New York 2, Boise 2, Danica Patrick 2, China 2, Us 2, California 2, Superstorm Sandy 2, John Boehner 1, Andrew Cuomo 1, Dan Deming 1, Entergy 1, Cheapair 1, Arizona 1
Network KICU
Duration 00:30:00
Rating G
Scanned in San Francisco, CA, USA
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on 2/5/2013